This is an update that will only affect tax professionals that prepare farm tax returns. If you do not prepare farm returns, the following will not impact you or your practice. The Consolidated Appropriations Act includes a transition rule for farmers who receive a cooperative payment in 2018 that is attributable to QPAI for which the old DPAD deduction was applicable. This will include any QPAI attributable to a cooperative tax year beginning before 2018. See Section 101(c)(2). With the original DPAD gone in 2018, taxpayers were left to wonder how to report such DPAD allocations. The law clarifies that such farmers will still be able to take the old DPAD deduction in 2018, as long as it is attributable to QPAI which was allowed to the cooperative for a tax year beginning before 2018. No 199A deduction will be allowed for such payments. IMPACTS TO FARMERS: Most cooperatives operate under a fiscal year. The transition rule will affect farmers that did business wi
